Burger King Parent Restaurant Brands Beats Q2 On Menu Innovation; Comps Up 9.6%

Restaurant Brands International Inc QSR reported second-quarter FY23 sales growth of 8.3% year-on-year to $1.77 billion, beating the analyst consensus estimate of $1.74 billion.

Consolidated comparable sales increased 9.6%, and net restaurants grew 4.1% versus the prior year. System-wide sales increased 14%.

Comparable sales for Tim Horton rose 11.4%, Burger King increased 10.2%, and Popeyes Louisiana Kitchen grew 6.3%.

Revenue for Tim Horton's climbed 5% Y/Y, Burger King rose 11.8%, and Popeyes Louisiana Kitchen increased 10.9%.

General and administrative expenses increased 11.6% Y/Y. The operating margin was 31.2%, and operating income for the quarter climbed 2.4% to $554 million.

Adjusted EBITDA for the quarter rose 10.3% Y/Y to $665 million.

Restaurant Brands held $1.2 billion in cash and equivalents as of June 30, 2023. Net cash provided by operating activities for six-months totaled $487 million.

Adjusted EPS of $0.85 beat the analyst consensus of $0.76.

Net debt as of June 30, 2023, was $13.3 billion.

Restaurant Brands' Board of Directors has declared a dividend of $0.55 per common share, payable on October 4, 2023, to shareholders of record on September 30, 2023.

Price Action: QSR shares traded lower by 0.52% at $74.16 on the last check Tuesday.